SIU recovers R6 billion through investigations but remains underfunded

The Citizen

5 days ago

The SIU clawed back R6.6 billion over the past six years while maintaining operational costs of R5.2 billion.
The portfolio committee on justice and constitutional development has expressed serious concerns about the severe underfunding plaguing two of South Africa's most crucial law enforcement and legal assistance entities.
It warned that budget constraints are undermining their ability to serve the public effectively.
During Tuesday's parliamentary session, committee members received troubling briefings from both the Special Investigating Unit and Legal Aid SA regarding their annual performance plans and budgets for the 2025-26 financial year, revealing a funding crisis that threatens the very foundations of these institutions' operations.
SIU faces mounting pressure despite strong recovery record
The Special Investigating Unit (SIU) has been operating under increasingly strained circumstances, with demand for its anti-corruption services skyrocketing while resources remain stagnant.
The committee, during the meeting, heard that over the past nine years, proclamations requiring SIU intervention surged by 52%.
These figures are contradictory to the unit's staff complement, which grew by a mere 6.5% during the same period.
However, the committee's media officer, Rajaa Azzakani said despite these constraints, the SIU has demonstrated effectiveness in recovering funds for the state.
The unit informed the committee that it had clawed back R6.6 billion in the past six years while maintaining operational costs of R5.2 billion.
However, this success story is overshadowed by declining grant funding that threatens future operations.
'SIU's grant income in 2025-26 is R459 860 000, with R481 157 000 estimated for 2026-27, less than R489 839 000 it received in 2023-24, despite the SIU having grown and recovered more funds for the government,' said Azzakani.
This reduction comes at a time when the SIU has expanded its operations and increased its recovery rates for government coffers.
Committee Chairperson Xola Nqola acknowledged the critical nature of the situation, stating: 'Both have suffered from underfunding or budget cuts.
'The committee will engage with all necessary to see how we better finance entities that are doing excellent and important work, but whose work is being hampered due to funding constraints.'
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Outstanding debts hamper operations
The SIU's financial challenges are compounded by a staggering R1.2 billion in outstanding invoices as of March 2025.
Provincial government departments account for the largest portion of this debt, owing R358.3 million or 30% of the total.
'Meanwhile, public entities owed the SIU 29% or R358 200 000, while national government departments owe 23% or R275 817 000,' Azzakani added.
To address this debt crisis, the SIU has launched Project Khokhela, a targeted debt recovery initiative, 'with the aim of instituting a targeted approach to debt recovery'.
The unit issued formal demand letters to the top 20 state institutions with the longest outstanding debts, with ministers' offices assisting in the distribution process.
It further stated that the SIU expressed optimism that settlements will be reached in the coming months.
Expansion plans threatened by resource constraints
The SIU's ambitious plans to expand its workforce to meet growing demands face significant obstacles due to funding limitations.
The unit estimated that it needs at least 1 000 officials to handle incoming work from increased proclamations, with the Estimates of National Expenditure budgeting for 1,100 officials.
However, without an additional R250 million annually, the SIU lacks the resources to fund this essential growth.
The unit is also developing a permanent structure for lifestyle audits, including the procurement of comprehensive analytical tools aimed at enhancing fraud and corruption prevention and detection capabilities.
This initiative represents a shift toward making lifestyle audits a cornerstone of risk management strategies.
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Funding model requires urgent overhaul
SIU officials emphasised that the organisation's financial stability hinges on a complete revision of its funding model to accommodate the increasing number of proclamations.
Securing additional funding from the national treasury and amending the SIU Act in consultation with the Minister of Finance have been identified as crucial steps for ensuring long-term sustainability.
Nqola supported this position, declaring: 'To strengthen the SIU, we must solidify the SIU Act. We need to establish with the department how far is this process.'
Legal Aid SA struggles with severe budget cuts
Legal Aid SA faces its own funding nightmare, grappling with a devastating R239 million budget reduction for the 2025/26 financial year.
The organisation's operational flexibility is severely limited, as salaries and related costs consume 80 percent of the budget, leaving cost containment measures to target only the remaining 20% allocated to operations.
The organisation has been forced to implement staff rationalisation plans, including position freezes and delayed recruitment, to manage employee costs.
However, these measures directly impact service delivery to clients and reduce operational capacity, ultimately limiting the number of people the entity can assist.
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Rental costs add to financial pressure
Legal Aid SA's financial woes are exacerbated by office accommodation leasing costs, where rental escalation rates consistently outpace the modest increases in budget allocations.
This creates an unsustainable situation where fixed costs consume an ever-growing portion of the available budget.
According to Legal Aid SA representatives, despite ongoing cost-cutting efforts, opportunities for additional savings have been largely exhausted.
The organisation stressed the importance of aligning organisational targets with available resources to ensure it can meet service demands without overextending its capacity.
Justice committee chair commits to advocacy
Nqola emphasised the committee's recognition of Legal Aid SA's vital role in ensuring access to justice for vulnerable populations.
'Therefore, the committee should do everything in its power to ensure that they are better funded, as it speaks directly to the services they are able to render to those who cannot afford to pay for legal services,' he stated.
WATCH: Justice Committee briefed by Legal Aid and SIU
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